Money and Credit Quiz for Class 10 Students
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Questions and Answers

What is the primary function of money in an economy?

  • Facilitating exchange of goods and services (correct)
  • Stimulating economic growth through investments
  • Generating profit for individuals
  • Controlling government spending
  • How does credit contribute to economic activity?

  • Increasing government regulations on financial transactions
  • Encouraging saving and reducing consumption
  • Reducing the overall money supply in the economy
  • Enabling consumers to make purchases beyond their immediate financial means (correct)
  • What is the role of central banks in the money and credit system?

  • Issuing currency for circulation within the economy
  • Providing loans to individuals for personal expenses
  • Guaranteeing profits for commercial banks through financial assistance
  • Regulating the money supply and interest rates to control inflation and economic growth (correct)
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